The Impact Of The ESOP On The Performance Of The Non Financial Listed Companies

In June 20,2014,the CSRC issued the "Guidance on the Implementation of the Employee Stock Ownership Plan for Listed Companies"(hereinafter referred to as "Guidance").Through employee stock ownership plan(ESOP),it is beneficial to establish the benefit and risk sharing mechanism between the owner and the worker,and improve the competitiveness of the company and the cohesiveness of the staff.Through the ESOP,employees can increase their income,share the bonus of enterprise development,enhance their work enthusiasm and improve their work efficiency.Through the ESOP,the company staff will receive the company's shares,employees will participate in the daily operation and management of the company,which will help to improve the level of corporate governance,reduce the agency cost.The ESOP appears late in China,and its development has been rough.In the United States,the combination of the ESOP and the retirement plan is a welfare plan.However,the ESOP is also a employee incentive method,which will affect the performance of the company as well as the executive's equity incentive.Modern companies not only require equity incentives for managers and key employees,but also require incentives for ordinary employees.The income of ordinary employees is mainly fixed salary and performance bonus,which is subject to the subjective factors of the examiners and the objective factors of the defect in the design of the assessment system,and its incentive effect is not ideal.Facing the incentive market competition,the modern company not only requires the ability management and the backbone staff with excellent work,but also requires the ordinary employees to have a good education,the confidence in the company,and the willingness to grow up with the company.ESOP,as a incentive for ordinary employees,can attract employees to join the company and form interest communities.In addition,the ESOP generally has costs,and its earnings partly depend on future stock prices.As a rational man and stakeholder,directors,supervisors,executives and ordinary employees pursue their own utility maximization,and there is a motivation to adjust the profits through earnings management of accruals.When the ESOP sells,corporate finance transfers positive signals to the market,and makes the stock price rise at the time of sale and makes more earnings.At present,the theoretical analysis of the academic field mainly focuses on the system and motivation.There is relatively rare of the empirical analysis of ESOP based on "Guidance".This paper uses the data of the ESOP of non financial listed companies after June 20,2014,and studies its impact on the performance of the company from the perspective of earnings management of accruals.By establishing the random effect model,we find that:1.Non financial listed companies which imply the ESOP also have the behavior of earnings management of accruals;2.During the lockup period,ESOP has positive effects on the real performance of non financial listed companies after excluding earnings management of accruals,and this proves to have incentive effect.Based on these two findings,five suggestions are put forward in this paper:1.Improve the accounting system;2.Establish and improve the external audit market;3.Design the reasonable ESOP;4.Perfect the relevant laws of ESOP;5.Regulate the board of supervisors and the independent director system.